Industry update - BMO announces changes to GIFs

Industry update - BMO announces changes to GIFs

BMO Insurance has announced a series of changes which will see some clients enjoy lower management fees.

BMO Insurance has announced a series of changes and enhancements to their guaranteed investment funds (GIFs) which will see wealthier clients enjoy lower management fees.

The firm has revealed it will begin offering an elite class of funds with reduced management fees if the total investment by family members living at the same address reaches, or exceeds, $250,000.

A second key feature is the introduction of a death guarantee reset option, which would secure market gains and increase the death guarantee for beneficiaries should the annuitant pass away. For an added fee, annuitants can also reset the death guarantee every three years up to, and including, the policy anniversary preceding their 75th birthday.

Further added features include the option to put BMO GIFs in registered, locked-in savings and retirement income plans as well as a tax free savings account (TFSA).

The changes come just two weeks after BMO began offering simplified life insurance in an attempt to attract younger Canadians. InsureNow and insureNOW Plus were designed to offer affordable, convenient insurance policies for generation x and millennials.